Rate Lock Advice & Mortgage Market Update
January 20, 2010, 8:30 PT
RATE LOCK ADVISORY
Lock Advice: FLOAT
MBS prices are up +9/32. Rates are improving this AM, I suggest that new locks be held until this afternoon. The PPI inflation data was mixed, while Housing Starts were lower than expected.
When MBS prices are up, Rates are down.
Lock advice changes throughout the day.
Good economic news = Bad Rate News.
National Average Fixed Rate Mortgage
Unchanged at 5.15% on Jan.19
Fannie Mae Mortgage Backed Securities
MBS Opened at 4.796% Down 0.069%.
10 Year Treasury Currently 3.730% Up 0.03%
DJI Stocks $10,534.91, Down -190.52, -1.78%
European and Asian Markets Down -1.716%
Nymex Crude Oil Currently $77.09 Down $1.93
FHA Changes are in the wind according to FHA Commissioner David H Stevens on a conference call to reporters today. UFMIP looks like it will increase to 2.25% from 1.75% this year and FHA will increase the downpayment requirement up to 10% for low FICO scores. The official FHA bulletin will be released on Jan. 21st. Read Bloomberg report
Stupidity reigns as king within our bank owned government (BOG). See the lastest TBWS Video
California Rates 01-20-10, 8:00 PT
30 Year Fixed to $417,000
Rate 4.75%, Point 1.000, APR 5.006%
APR Based on $350,000 Loan at 80% LTV
Above Rate can be locked for 30 days.
Call for Quotes on FHA and VA loans With Detailed Cost Estimates.
No Application or Credit Report required